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Warner Bros. Discovery Faces Streaming Service Changes and Looming Layoffs

Photo courtesy of Christian Joudrey via Unsplash.

Warner Bros. Discovery Faces Streaming Service Changes and Looming Layoffs

By Movieguide® Contributor

As streaming service changes and rumored layoffs loom, Warner Bros. Discovery faces a critical week ahead of their Q2 earnings report on Thursday.

Deadline reports that “CEO David Zaslav and his team are expected to lay out more concrete plans for the combined entity than they did on the Q1 earnings call, held just a couple of weeks after the $43 billion Discovery-WarnerMedia merger had been completed.”

The report could also include details regarding the future of the two companies’ streaming services, Discovery+ and HBO Max, such as how they might be combined and under what name.

The future of HBO Max has been precarious. While they paused new live-action kids and family programming as well as unscripted content, they are preparing to launch HOUSE OF THE DRAGON, a GAME OF THRONES prequel.

Additionally, high-level discussions have centered around a “unifying moniker” that would “combine the coastal/metropolitan appeal of HBO Max and the Middle America pull of Discovery+.”

Along with streaming service questions, the company expects layoffs.

Deadline reports that a few high-profile departures, including Warner Bros. CEO Ann Sarnoff and Warner Bros. President of Global Kids, Young Adults and Classic Tom Ascheim, occurred within the first three months since the merger in April.

However, as the company deals with a “bigger mess than initially expected,” thousands of workers will be affected, and they expect cuts to continue from August through Thanksgiving.

Warner Bros. Discovery already cut 30%, or 1,000 roles, of its sales division workforce. As the company looks to eliminate redundancies, more sales cuts, along with marketing, distribution and engineering cuts, are expected.

Warner Bros. Discovery has told division leaders to “present a strategic outlook of how their operations can work more efficiently,” rather than focusing on just eliminating an arbitrary number of positions.

Deadline believes that the pending cuts may appease skeptical investors as the company faces financial struggles like other major media groups.

“The stocks of Discovery and former WarnerMedia parent AT&T both lost significant ground during the 10 months when the deal was pending. WBD stock has fallen 38% since it began trading on April 11 and closed Friday at a mere $15 a share,” Deadline says.

Movieguide® previously reported on the Discovery-WarnerMedia merger:

Discovery announced Friday that their stockholders have approved their merger with WarnerMedia to create Warner Bros. Discovery.

The new company will combine WarnerMedia’s entertainment, sports, and news content with Discovery’s nonfiction, international entertainment, and sports businesses.

According to Deadline, the Warner Bros. Discovery merger won’t be finalized until April, but this announcement means the two companies can now start discussions about management structure and the organization of the businesses.

They will also figure out how this merger will affect the two companies’ streaming services, like CNN+, which will launch March 29.

The $43 million merger will create a huge new player in the entertainment world, with 200,000 hours of programming and 100+ channels, including HBO, Warner Bros., Discovery, DC, CNN, WB Games, Turner Sports, Cartoon Network, HGTV, Food Network, TNT, TBS, Turner Classic Movies, Wizarding World, Adult Swim, Eurosport, Magnolia, TLC, Animal Planet, and ID.

Now more than ever we’re bombarded by darkness in media, movies, and TV. Movieguide® has fought back for almost 40 years, working within Hollywood to propel uplifting and positive content. We’re proud to say we’ve collaborated with some of the top industry players to influence and redeem entertainment for Jesus. Still, the most influential person in Hollywood is you. The viewer.

What you listen to, watch, and read has power. Movieguide® wants to give you the resources to empower the good and the beautiful. But we can’t do it alone. We need your support.

You can make a difference with as little as $7. It takes only a moment. If you can, consider supporting our ministry with a monthly gift. Thank you.

Movieguide® is a 501c3 and all donations are tax deductible.


Now more than ever we’re bombarded by darkness in media, movies, and TV. Movieguide® has fought back for almost 40 years, working within Hollywood to propel uplifting and positive content. We’re proud to say we’ve collaborated with some of the top industry players to influence and redeem entertainment for Jesus. Still, the most influential person in Hollywood is you. The viewer.

What you listen to, watch, and read has power. Movieguide® wants to give you the resources to empower the good and the beautiful. But we can’t do it alone. We need your support.

You can make a difference with as little as $7. It takes only a moment. If you can, consider supporting our ministry with a monthly gift. Thank you.

Movieguide® is a 501c3 and all donations are tax deductible.